Synopsis about Islamic Banks

Emergence of Islamic Banks

•    Local savings banks (Egypt) in 1963
•    Nasser Social Bank (Egypt)
•    Islamic Development Bank in 1974
•    Dubai Islamic Bank in the UAE in 1975
•    Faysal Islamic Bank Egypt
•    Faysal Islamic Bank Sudan
•    Kuwait Finance House in 1977
•    Jordan Islamic Bank in 1978
•    Bahrain Islamic Bank in 1979

Significance of Islamic Banks

•    They fulfill the desire of Islamic communities to find channels of banking business free of the use of interest.
•    Creating a scope for the application of jurisprudence in banking business.
•    Islamic banks are considered as a practical demonstration of the principles of Islamic economy.

Characteristics of Islamic Banks

•    Application of the principles of Islamic Sharia’a in all banking and investment business.
•    Application of the method of participation in profits or losses in business.
•    Complying with the development, investment and positive qualifies in investment and banking business.
•    Application of the method of financial mediation based upon participation.
•    Application of the Islamic values and ethics in banking business.
•    Further, Islamic banks are unique in offering a range of business activities not

provided by conventional banks, namely the following:

1.    Soft term loans (Qard Hassan)
2.    Zakat Fund business.
3.    Cultural banking activities.

3.    Internal Objectives: 

•    Creating new forms of investment.
•    Creating and developing banking services.